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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.08
ADS's Cash to Debt is ranked lower than
90% of the 736 Companies
in the Global Business Services industry.

( Industry Median: 1.50 vs. ADS: 0.08 )
Ranked among companies with meaningful Cash to Debt only.
ADS' s 10-Year Cash to Debt Range
Min: 0.03   Max: N/A
Current: 0.08

Equity to Asset 0.10
ADS's Equity to Asset is ranked lower than
93% of the 682 Companies
in the Global Business Services industry.

( Industry Median: 0.49 vs. ADS: 0.10 )
Ranked among companies with meaningful Equity to Asset only.
ADS' s 10-Year Equity to Asset Range
Min: -0.01   Max: 0.46
Current: 0.1

-0.01
0.46
Interest Coverage 4.22
ADS's Interest Coverage is ranked lower than
87% of the 494 Companies
in the Global Business Services industry.

( Industry Median: 40.12 vs. ADS: 4.22 )
Ranked among companies with meaningful Interest Coverage only.
ADS' s 10-Year Interest Coverage Range
Min: 0.56   Max: 9999.99
Current: 4.22

0.56
9999.99
F-Score: 6
Z-Score: 1.76
M-Score: -2.10
WACC vs ROIC
8.57%
8.03%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 20.12
ADS's Operating margin (%) is ranked higher than
85% of the 729 Companies
in the Global Business Services industry.

( Industry Median: 5.49 vs. ADS: 20.12 )
Ranked among companies with meaningful Operating margin (%) only.
ADS' s 10-Year Operating margin (%) Range
Min: 0.42   Max: 26.76
Current: 20.12

0.42
26.76
Net-margin (%) 9.37
ADS's Net-margin (%) is ranked higher than
74% of the 730 Companies
in the Global Business Services industry.

( Industry Median: 3.70 vs. ADS: 9.37 )
Ranked among companies with meaningful Net-margin (%) only.
ADS' s 10-Year Net-margin (%) Range
Min: -5.12   Max: 11.6
Current: 9.37

-5.12
11.6
ROE (%) 36.47
ADS's ROE (%) is ranked higher than
94% of the 699 Companies
in the Global Business Services industry.

( Industry Median: 8.20 vs. ADS: 36.47 )
Ranked among companies with meaningful ROE (%) only.
ADS' s 10-Year ROE (%) Range
Min: -10.76   Max: 316.77
Current: 36.47

-10.76
316.77
ROA (%) 3.22
ADS's ROA (%) is ranked lower than
52% of the 742 Companies
in the Global Business Services industry.

( Industry Median: 3.56 vs. ADS: 3.22 )
Ranked among companies with meaningful ROA (%) only.
ADS' s 10-Year ROA (%) Range
Min: -2.49   Max: 5.99
Current: 3.22

-2.49
5.99
ROC (Joel Greenblatt) (%) 15.74
ADS's ROC (Joel Greenblatt) (%) is ranked lower than
55% of the 730 Companies
in the Global Business Services industry.

( Industry Median: 21.15 vs. ADS: 15.74 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
ADS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 14.78   Max: 114.83
Current: 15.74

14.78
114.83
Revenue Growth (3Y)(%) 15.70
ADS's Revenue Growth (3Y)(%) is ranked higher than
83% of the 549 Companies
in the Global Business Services industry.

( Industry Median: 4.70 vs. ADS: 15.70 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
ADS' s 10-Year Revenue Growth (3Y)(%) Range
Min: -6.1   Max: 27.3
Current: 15.7

-6.1
27.3
EBITDA Growth (3Y)(%) 10.60
ADS's EBITDA Growth (3Y)(%) is ranked higher than
61% of the 456 Companies
in the Global Business Services industry.

( Industry Median: 6.10 vs. ADS: 10.60 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
ADS' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 7.1   Max: 203.7
Current: 10.6

7.1
203.7
EPS Growth (3Y)(%) 14.20
ADS's EPS Growth (3Y)(%) is ranked higher than
60% of the 414 Companies
in the Global Business Services industry.

( Industry Median: 8.70 vs. ADS: 14.20 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
ADS' s 10-Year EPS Growth (3Y)(%) Range
Min: -20.6   Max: 74.2
Current: 14.2

-20.6
74.2
» ADS's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

ADS Guru Trades in Q2 2014

RS Investment Management 27,621 sh (+56.46%)
Ronald Muhlenkamp 171,675 sh (+0.31%)
Columbia Wanger 525,000 sh (unchged)
Louis Moore Bacon Sold Out
Jim Simons Sold Out
Ray Dalio 14,374 sh (-8.29%)
Pioneer Investments 18,933 sh (-40.78%)
» More
Q3 2014

ADS Guru Trades in Q3 2014

Jim Simons 77,600 sh (New)
Paul Tudor Jones 2,934 sh (New)
Ray Dalio 25,594 sh (+78.06%)
Columbia Wanger 525,000 sh (unchged)
Ronald Muhlenkamp 171,675 sh (unchged)
Pioneer Investments 22,678 sh (unchged)
RS Investment Management 20,167 sh (-26.99%)
» More
Q4 2014

ADS Guru Trades in Q4 2014

Joel Greenblatt 109,629 sh (New)
Steven Cohen 9,400 sh (New)
Jim Simons 82,316 sh (+6.08%)
RS Investment Management 20,826 sh (+3.27%)
Paul Tudor Jones Sold Out
Pioneer Investments 22,460 sh (-0.96%)
Ray Dalio 24,694 sh (-3.52%)
Columbia Wanger 380,900 sh (-27.45%)
Ronald Muhlenkamp 121,330 sh (-29.33%)
» More
Q1 2015

ADS Guru Trades in Q1 2015

Paul Tudor Jones 59,735 sh (New)
Ray Dalio Sold Out
Steven Cohen Sold Out
Jim Simons Sold Out
Columbia Wanger Sold Out
Ronald Muhlenkamp 121,200 sh (-0.11%)
Pioneer Investments 17,626 sh (-21.52%)
RS Investment Management 15,606 sh (-25.06%)
Joel Greenblatt 73,082 sh (-33.34%)
» More
» Details

Insider Trades

Latest Guru Trades with ADS

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 35.90
ADS's P/E(ttm) is ranked lower than
76% of the 597 Companies
in the Global Business Services industry.

( Industry Median: 22.60 vs. ADS: 35.90 )
Ranked among companies with meaningful P/E(ttm) only.
ADS' s 10-Year P/E(ttm) Range
Min: 8.94   Max: 39.29
Current: 35.9

8.94
39.29
Forward P/E 17.21
ADS's Forward P/E is ranked lower than
54% of the 446 Companies
in the Global Business Services industry.

( Industry Median: 16.08 vs. ADS: 17.21 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 35.00
ADS's PE(NRI) is ranked lower than
75% of the 518 Companies
in the Global Business Services industry.

( Industry Median: 21.30 vs. ADS: 35.00 )
Ranked among companies with meaningful PE(NRI) only.
ADS' s 10-Year PE(NRI) Range
Min: 7.72   Max: 39.26
Current: 35

7.72
39.26
P/B 9.80
ADS's P/B is ranked lower than
91% of the 835 Companies
in the Global Business Services industry.

( Industry Median: 2.60 vs. ADS: 9.80 )
Ranked among companies with meaningful P/B only.
ADS' s 10-Year P/B Range
Min: 2.88   Max: 175.47
Current: 9.8

2.88
175.47
P/S 3.27
ADS's P/S is ranked lower than
78% of the 920 Companies
in the Global Business Services industry.

( Industry Median: 1.29 vs. ADS: 3.27 )
Ranked among companies with meaningful P/S only.
ADS' s 10-Year P/S Range
Min: 0.81   Max: 4.41
Current: 3.27

0.81
4.41
PFCF 17.90
ADS's PFCF is ranked higher than
54% of the 572 Companies
in the Global Business Services industry.

( Industry Median: 18.90 vs. ADS: 17.90 )
Ranked among companies with meaningful PFCF only.
ADS' s 10-Year PFCF Range
Min: 3.71   Max: 200.25
Current: 17.9

3.71
200.25
POCF 15.54
ADS's POCF is ranked lower than
64% of the 530 Companies
in the Global Business Services industry.

( Industry Median: 12.10 vs. ADS: 15.54 )
Ranked among companies with meaningful POCF only.
ADS' s 10-Year POCF Range
Min: 3.4   Max: 47.52
Current: 15.54

3.4
47.52
EV-to-EBIT 24.12
ADS's EV-to-EBIT is ranked lower than
74% of the 561 Companies
in the Global Business Services industry.

( Industry Median: 15.66 vs. ADS: 24.12 )
Ranked among companies with meaningful EV-to-EBIT only.
ADS' s 10-Year EV-to-EBIT Range
Min: 6.3   Max: 25.6
Current: 24.12

6.3
25.6
PEG 2.02
ADS's PEG is ranked higher than
55% of the 232 Companies
in the Global Business Services industry.

( Industry Median: 2.29 vs. ADS: 2.02 )
Ranked among companies with meaningful PEG only.
ADS' s 10-Year PEG Range
Min: 0.27   Max: 2.93
Current: 2.02

0.27
2.93
Shiller P/E 49.30
ADS's Shiller P/E is ranked lower than
79% of the 459 Companies
in the Global Business Services industry.

( Industry Median: 26.00 vs. ADS: 49.30 )
Ranked among companies with meaningful Shiller P/E only.
ADS' s 10-Year Shiller P/E Range
Min: 12.26   Max: 72.82
Current: 49.3

12.26
72.82
Current Ratio 2.08
ADS's Current Ratio is ranked higher than
67% of the 695 Companies
in the Global Business Services industry.

( Industry Median: 1.52 vs. ADS: 2.08 )
Ranked among companies with meaningful Current Ratio only.
ADS' s 10-Year Current Ratio Range
Min: 0.92   Max: 2.65
Current: 2.08

0.92
2.65
Quick Ratio 2.08
ADS's Quick Ratio is ranked higher than
71% of the 695 Companies
in the Global Business Services industry.

( Industry Median: 1.39 vs. ADS: 2.08 )
Ranked among companies with meaningful Quick Ratio only.
ADS' s 10-Year Quick Ratio Range
Min: 0.92   Max: 2.65
Current: 2.08

0.92
2.65
Days Sales Outstanding 36.79
ADS's Days Sales Outstanding is ranked higher than
73% of the 609 Companies
in the Global Business Services industry.

( Industry Median: 56.36 vs. ADS: 36.79 )
Ranked among companies with meaningful Days Sales Outstanding only.
ADS' s 10-Year Days Sales Outstanding Range
Min: 33.37   Max: 185.97
Current: 36.79

33.37
185.97

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.30
ADS's Price/DCF (Projected) is ranked higher than
61% of the 493 Companies
in the Global Business Services industry.

( Industry Median: 1.40 vs. ADS: 1.30 )
Ranked among companies with meaningful Price/DCF (Projected) only.
ADS' s 10-Year Price/DCF (Projected) Range
Min: 0.54   Max: 1.98
Current: 1.3

0.54
1.98
Price/Median PS Value 1.30
ADS's Price/Median PS Value is ranked lower than
57% of the 784 Companies
in the Global Business Services industry.

( Industry Median: 1.20 vs. ADS: 1.30 )
Ranked among companies with meaningful Price/Median PS Value only.
ADS' s 10-Year Price/Median PS Value Range
Min: 0.41   Max: 1.61
Current: 1.3

0.41
1.61
Price/Peter Lynch Fair Value 2.90
ADS's Price/Peter Lynch Fair Value is ranked lower than
71% of the 239 Companies
in the Global Business Services industry.

( Industry Median: 1.70 vs. ADS: 2.90 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
ADS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.48   Max: 2.83
Current: 2.9

0.48
2.83
Earnings Yield (Greenblatt) 4.10
ADS's Earnings Yield (Greenblatt) is ranked lower than
57% of the 780 Companies
in the Global Business Services industry.

( Industry Median: 5.00 vs. ADS: 4.10 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) only.
ADS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.9   Max: 16
Current: 4.1

3.9
16
Forward Rate of Return (Yacktman) 17.37
ADS's Forward Rate of Return (Yacktman) is ranked higher than
67% of the 358 Companies
in the Global Business Services industry.

( Industry Median: 12.30 vs. ADS: 17.37 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) only.
ADS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 17.2   Max: 44.5
Current: 17.37

17.2
44.5

Business Description

Industry: Business Services » Business Services
Compare:ADP, G, ENV, CMPGY, SGSOY » details
Traded in other countries:LID.Germany,
Alliance Data Systems Corp is a provider of data-driven and transaction-based marketing and customer loyalty solutions. It offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, analytics and creative services, direct marketing services and private label and co-brand retail credit card programs. It engaged in facilitating and managing interactions between its clients and their customers through all consumer marketing channels, including in-store, on-line, catalog, mail, telephone and email, and emerging channels such as mobile and social media. The Company captures and analyzes data created during each customer interaction, leveraging the insight derived from that data to enable clients to identify and acquire new customers and to enhance customer loyalty. The Company's products and services are reported under three segments: LoyaltyOne, Epsilon, and Private Label Services and Credit. It has traditionally marketed and sold its products and services on a stand-alone basis but increasingly market and sell them on an integrated basis. LoyaltyOne includes the Company's Canadian AIR MILES Reward Program. Epsilon provides end-to-end, integrated direct marketing solutions that combine database marketing technology and analytics with a broad range of direct marketing services, including email marketing campaigns. Private Label Services and Credit encompasses credit card processing, billing and payment processing, customer care and collections services for private label retailers as well as private label retail credit card receivables financing, including securitization of the credit card receivables that it underwrites from its private label retail credit card programs. Through its consulting services, the Company analyzes its clients' business, brand and/or products to create customer acquisition and retention strategies and tactics designed to further optimize its clients' customer relationships and marketing return on investment. The Company designs, builds and operates complex consumer marketing databases for large consumer-facing brands such as Hilton HHonors and the Citi ThankYou programs. The Company performs processing services and provides service and maintenance for private label and co-brand credit card programs. It use automated technology for bill preparation, printing and mailing, and also offer consumers the ability to view, print and pay their bills on-line. The Company's client base of more than 1,300 companies consists of large consumer-based businesses, including brands such as Bank of Montreal, Canada Safeway, Shell Canada, AstraZeneca, Hilton, Bank of America, General Motors, Victoria's Secret, Lane Bryant, Pottery Barn, J. Crew and Ann Taylor. The Company competes with marketing services companies, credit card issuers, and data processing companies, as well as with the in-house staffs of its current and potential clients. Federal and state
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